Brent Crude Prices Swing Sharply Amid US-Iran Conflict Developments

Brent crude prices saw significant fluctuations over the past week due to developments in the US-Iran conflict and their implications for global oil supplies.

The market reacted sharply on July 27 when the US suspended its campaign of air strikes against Iran, raising hopes of a diplomatic resolution. As a result, Brent futures settled at $88.36 a barrel, down 8.7 per cent from the previous price.

However, prices extended their decline on July 28 as investors assessed the possibility of renewed US-Iran talks. Despite concerns over subdued oil flows through the Strait of Hormuz providing some support, Brent futures traded around $87.86 at that time.

The market later rebounded as fighting resumed, with Brent moving back above $90 a barrel amid renewed fears of supply disruptions. This sharp recovery highlighted the market's sensitivity to geopolitical developments.